Testing the Waters Materials Related to Series #36OWENS (06121253).DOCX

Testing the Waters Materials Related to Series #BAYC601

From the Rally Ap:

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DESCRIPTION OF SERIES BORED APE YACHT CLUB 601

Investment Overview

·Upon completion of the Series #BAYC601 Offering, Series #BAYC601 will purchase a Number 601 Bored Ape Yacht Club NFT with Sea Captain’s Hat for Series #BAYC601 (The “Series Bored Ape Yacht Club 601” or the “Underlying Asset” with respect to Series #BAYC601, as applicable), the specifications of which are set forth below.

·Non-fungible tokens (NFT) are unique digital assets that exist on a blockchain (a distributed public ledger) and are used to represent tangible and intangible items such as art, sports highlights, and virtual avatars.

·The Bored Ape Yacht Club (commonly abbreviated as BAYC) is a collection of 10,000 “Bored Ape” NFTs created by Yuga Labs. Each Ape is unique and grants its owner entrance to the Yacht Club and associated membership benefits.

·The Underlying Asset is a Number 601 Bored Ape Yacht Club NFT with Sea Captain’s Hat.

Asset Description

Overview & Authentication

·According to the BAYC website, each Ape is unique and “programmatically generated from over 170 possible traits, including expression headwear, clothing, and more.”

·The BAYC project was launched on April 30th, 2021. Originally, Apes were offered at a price of around $200. About a day after launch, all of the 10,000 Apes had sold out.

·The founders of the BAYC project have explained that their intention is for the NFTs to foster community and act as a “digital identity.”

·BAYC was one of the first NFT projects to allow individual buyers the commercial rights to their NFTs, according to The New Yorker. “…each member is allowed to brand his own projects or products and sell them independently.”

·Members of the BAYC were offered an NFT dog (a collection called the Bored Ape Kennel Club).

·The Mutant Ape Yacht Club is “a collection of up to 20,000 Mutant Apes that can only be created by exposing an existing Bored Ape to a vial of MUTANT SERUM or by minting a Mutant Ape in the public sale.”

·On September 9^th, 2021, two lots of BAYC NFTs sold at Sotheby’s. The first lot contained 101 Apes and sold for $24,393,000. The second lot contained 101 Bored Ape Kennel Club NFTs and sold for $1,835,000.

·As of September 9, 2021, the Bored Ape Yacht Club and the Mutant Ape Yacht Club the 3^rd and 4^th top NFTs on OpenSea over the previous 30 days, ranked by volume, floor price, and other statistics.

·The Underlying Asset is accompanied by proof of ownership stored on the Ethereum blockchain.

Notable Features

·The Underlying Asset is Bored Ape #601.

·The Underlying Asset has the following five properties: Purple Background, Closed Eyes, Cream Fur, Sea Captain’s Hat, Rage Mouth.

·The Underlying Asset was minted on April 30, 2021.

·The Underlying Asset was sold on June 8, 2021, for 2 Ethereum, on July 11, 2021, for 3.88 Ethereum, on July 16, 2021, for 5.8 Ethereum, on July 19, 2021, for 6.29 Ethereum, on September 2 for 40 Ethereum, and most recently for 42 Ethereum on September 9.

Notable Defects

·The Underlying Asset is consistent with the description provided by The Bored Ape Yacht Club and proof of ownership stored on the Ethereum blockchain.

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Details

Series Bored Ape Yacht Club 601
Creator	Yuga Labs
NFT	Bored Ape Yacht Club
Number	601
Property	Sea Captain’s Hat
Property Rarity	3% Have This Trait
Property	Rage (Mouth)
Property Rarity	3% Have This Trait
Property	Cream (Fur)
Property Rarity	6% Have This Trait
Property	Closed (Eyes)
Property Rarity	7% Have This Trait
Property	Purple (Background)
Property Rarity	13% Have This Trait
Proof of Ownership	Ethereum Blockchain

Depreciation

The Company treats Memorabilia Assets as collectible and therefore will not depreciate or amortize the Series Bored Ape Yacht Club 601 going forward.

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From the Rally Twitter Page (@OnRallyRd)

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